HOME CENTER and HOME FASHION STORE

Financial Results Briefing Material
for the Three Months Ended June 30, 2024
（April 01, 2024 - June 30, 2024）

August 19, 2024
NAFCO Corporation（Securities Code: 2790）

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HOME CENTER and HOME FASHION STORE

Financial Results for the Three Months Ended
June 30, 2024
（April 01, 2024 - June 30, 2024）

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Results for the Three Months Ended June 30, 2024
（Millions of yen）
Three months ended
June 30, 2023

% of total
operatingrevenueThree months ended
June 30, 2024

% of total
operatingrevenue

YoY Change

Total Operating
revenue

51,947100.0%

48,691100.0%

93.7%

Operating grossprofit17,64834.0%

16,693

34.3%

94.6%

Operating profit

2,678

5.2%

1,511

3.1%

56.4%

Ordinary profit

2,688

5.2%

1,527

3.1%

56.8%

Profit

1,619

3.1%

963

2.0%

59.5%

*Total operating revenue was calculated by adding operating revenue to net sales.
• Income and expenses pertaining to real estate leasing are reclassified as operating revenue and selling, general and administrative
expenses from the fiscal year ending March 31, 2025.
• Due to the change, figures for the previous fiscal year have been reclassified as well. This has no impact on ordinary profit or profit before
income taxes.
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HOME CENTER and HOME FASHION STOREStatements of Income for the Three Months Ended June 30, 2024

(Millions of yen)Three months ended
June 30, 2023

% of sales

Three months ended
June 30, 2024

Net sales

51,732100.0%

48,519100.0%

93.8%

Gross profit

17,434

33.7%

16,521

34.1%

94.8%

Operating grossprofit17,64834.1%

16,693

34.4%

94.6%

Selling, general andadministrative
expenses

14,96928.9%15,182

31.3%

101.4%

Operating profit

2,678

5.2%

1,511

3.1%

56.4%

Ordinary profit

2,688

5.2%

1,527

3.1%

56.8%

Profit

1,619

3.1%

963

2.0%

59.5%

% of sales

YoY Change• Income and expenses pertaining to real estate leasing are reclassified as operating revenue and selling, general and administrative
expenses from the fiscal year ending March 31, 2025.
• Due to the change, figures for the previous fiscal year have been reclassified as well. This has no impact on ordinary profit or profit before
income taxes.
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HOME CENTER and HOME FASHION STORE

Balance Sheets
Fiscal Year Ended
March 31, 2024

（Millions of yen）
Three months ended
June 30, 2024

Change From
the End of the Previous
Fiscal Year

Total assets

232,246

238,163+5,917

Current assets

99,574102,380+2,80632,99735,103+2,106132,672

135,783+3,110119,210122,168+2,95872,88578,605+5,72018,82818,905+76

159,361

159,558+197

Cash and deposit ratio (%)

14.2

14.7

Ratio of interest-bearing liabilities (%)

8.1

7.9

Equity ratio (%)

68.6

67.0

Current ratio (%)

170.4

160.6

Non-current ratio (%)

83.3

85.1

Of which, cash and deposits

Non-current assets
Of which, property, plant and equipment

Liabilities
Of which, interest-bearing liabilities（short-term borrowings, current portion of
long-term borrowings, long-term borrowings）

Net assets

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HOME CENTER and HOME FASHION STORE

Trends in Sales Composition by ProductMaterials, DIY andgardening goods

Three months
ended
Jun. 2017

Three months
ended
Jun. 2018

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Three months
ended
Jun. 2019

Household
goods

Three months
ended
Jun. 2020

Furniture and homefashion goods

Three months
ended
Jun. 2021

Three months
ended
Jun. 2022

OthersThree months
ended
Jun. 2023

Three months
ended
Jun. 2024

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HOME CENTER and HOME FASHION STORE

Trends in Existing Stores
Net sales of existing stores compared to previous year (%)
Sales of seasonal products forsummer were strong due toextreme heat

Three months ended June 30,2024(existing stores)

Sales of winter products
grew as temperatures
went down

Net sales: 93.6%
Customers: 95.9%
Customer average: 97.6%

The rainy season
started later than usual

The rainy season started
more than 10 days earlier
than last year in the area from
Northern Kyushu to Kinki

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Sales
Customers
Customeraverage

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Trends in Gross Profit Margin at the End of the Term
Left axis (gross profit margin: %)Right axis (private brand ratio: %)Three months ended
June 30, 2024

Gross profit margin

34.1%

(%)

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

Q1FY3/25

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HOME CENTER and HOME FASHION STORE

Factors for a Change in Operating Profit(Millions of yen)

Operating gross profit(369)

Selling, general and administrative expenses

(220)
(229)
Householdgoods

Materials, DIY
and gardening goods

2,678

(94)
OthersFurniture and homefashion goods

(42)

+38

Operatingrevenue
Advertisingexpenses(126)
Personnel
expenses

+38

(64)

Utilityexpenses(97)
OthersDepreciation
and amortization

1,511
Three months ended June 30, 2023
Operating profit
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HOME CENTER and HOME FASHION STORE

Trends in Private Brand Ratio at the End of the Term(%)

Company total
Private Brand ratio

Fiscal year
ended
Mar. 2021
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Materials, DIY andgardening goods

Fiscal year
ended
Mar. 2022

Householdgoods

Fiscal year
ended
Mar. 2023

Furniture and homefashion goods

Fiscal year
ended
Mar. 2024

Three months
ended
Jun. 2024
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HOME CENTER and HOME FASHION STORE

Private Brand Products (Materials, DIY and Gardening Goods)

Garden Weed Control Sheets
Weather
resistant for
Approx.

Weather
resistant for
Approx.

Weed control sheet for a better landscape

Permeability

Artificial turf-like weed
control sheet■Natural-looking, artificial
turf-like weed control sheet.

Cost effectivenessSheetthickness
Approx.

0.3 mmCost effectivenessSheetthickness
Approx.

Made of
Polypropylene
Wovencloth

0.5 mmWeather
resistant for
Approx.

0.5 mmMade of
Polypropylene
Wovencloth

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Polypropylene
Wovencloth■Block light 99.9%■Permeability is five times higher*1, which makes the surface dry quickly.
■Approx. 20% lighter*1. Easier to carry and install.
*1 Compared with our conventional products

Penetration resistance

Dark green, ultra high-density
weed control sheet■High penetration resistanceand permeability.
■Dark green that matches thelandscape.
■Woven in high density toprevent weed growth.
■High density: 220 g/m2(±3%)

Permeability
Processability

Cost effectivenessSheetthickness
Approx.

Made of

Weed control real artificial turf

10 years

For a better landscape in a small space

Permeability
Processability

Penetration resistance

Weed control sheet for a better landscape

6–7 years

Weather
resistant for
Approx.

8 years

Woodgrain-like weed
control sheet■Woodgrain-like weed
control sheet for the garden.

Approx.

Permeability
Processability

Processability

Dark green, high-density
weed control sheet■High penetration resistanceand permeability.
■Dark green that matches thelandscape.
■Woven in high density toprevent weed growth.
■High density: 125 g/m2(±3%)

8 years

Penetration resistance

For a small space in the garden at home

Penetration resistance

5 years

Weather resistant for

Cost effectiveness
Sheet
Made ofthickness
Approx.
Polypropylene
0.6 mm Wovencloth

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HOME CENTER and HOME FASHION STORE

Private Brand Products (Household goods)

Portable Air Conditioners
Portable air conditioner■Equipped with a horizontal looper that automatically sends
cold air extensively *Adjust manually for the vertical direction■Cold air, dehumidification, and ventilation modes for comfort■Comes with waste heat duct and window panel (for window
size 72–144.5 cm)

Portable air conditioner■Equipped with a horizontal looper that automaticallysends cold air extensively *Adjust manually for the verticaldirection■Cold air, dehumidification, and ventilation modes for
comfort■2.7kW powerful cold air

Spot cooler with flexible heat exhaust duct
■Drain saving design that discharges less wastewater■Equipped with water full sensor to assure peace of mind

Mini spot cooler■Equipped with water full sensor toassure peace of mind
■No installation work necessary

Series ready for
immediate use without
installation work
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Private Brand Products (Furniture and Home Fashion Goods)

Cool Touch Bedding
Stay cool in summer with cool touch

Cooling level

Cool point

Cooling level

Cool point EX

Cooling level

Super cool point[Cool point series]

Bedding that uses cool touch fabric, including mattresspads, duvets, and pillow cases.
All products are reversible. Enjoy both sides.
In addition to cool touch, the lineup has different coollevels featuring different amounts of cotton filling,
antibacterial finish, deodorant finish, and moistureabsorption and desorption properties.
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HOME CENTER and HOME FASHION STOREStore Openings and Expansion/Renovation (New Stores)
Taka Store(Home center)
Open April 2024
New Stores(Home center)
Open April 2024

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Expansion/Renovation

Arao Chuo StoreStore Name

Opening

Location

Store Style

Taka

April

Hyogo

Home center(small store)

Arao Chuo

April

Kumamoto

Home center(small store)

Hikarimachi

April

Hiroshima

Home center

Matsunaga

April

Hiroshima

Home center

Hino

April

Shiga

Home center

HatazakiJune

FukuokaHome center

Iizuka Minami(Furniture)

June

Fukuoka

Furniture house(TWO-ONE STYLE)

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HOME CENTER and HOME FASHION STOREStore Openings and Expansion/Renovation (Expansion/Renovation)
Hatazaki Store(Home center)
Reopen after renovation
June 2024

Hino Store(Home center)
Reopen after renovation
April 2024

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Iizuka Minami Store(Furniture house)(Combination store)
Reopen after renovation
June 2024

Matsunaga Store(Home center)
Reopen after renovation
April 2024

Hikarimachi Store(Home center)
Reopen after renovation
April 2024

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HOME CENTER and HOME FASHION STORE

Number of Stores by Area
KyushuChugoku
ShikokuKansai

Chubu

Kanto
Tohoku：New stores in the fiscal year ending
March 31, 2025

全店

Total Stores

店

KansaiComposition ratio (no. of stores)
エリア別店舗構成比（単位：％）
by area (%)

TohokuChugoku

Kanto
KyushuAll Rights Copying NAFCO Co.,Ltd.

Shikoku

Chubu

Small stores of
1,000 m2

HI stand-alone
storesFurniture-onlystoresCombination
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HOME CENTER and HOME FASHION STORE

Roles in Disasters
Number of local authorities withwhich we have entered agreements
As of June 30, 2024

336 local authorities

Change in the number of
local authorities with which wehave entered agreements(agreements for the supply
of disaster supplies)* Local authorities include police(excluding those during the application process from the number)

Earthquake in the Hyuganada Sea(Occurred around 4:53 p.m. on August 8, 2024)[Minor damage to stores]■Products fell, and some buildings were damaged or destroyed[Cooperation with local communities]■Some local authorities, etc. reached out to confirm what to do
in contingencies
We will operate our business prioritizing the safety of customers
and employees above all, while cooperating with local
communities.
While demand for earthquake countermeasures may increase, the impact
on business results is expected to be minor.
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FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

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HOME CENTER and HOME FASHION STOREForecast for the Fiscal Year Ending
March 31, 2025
(April 01, 2024 – March 31, 2025)

Revision: [Included]

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HOME CENTER and HOME FASHION STOREForecast for the Fiscal Year Ending March 31, 2025
(Millions of yen)
Full-year(Plan)

Fiscal year ended
March 31, 2024
(Results)% of sales

YoY Change(%)

190,784

100.0%

99.3%

192,116100.0%

Operating profit

4,576

2.4%

83.4%

5,477

2.9%

Ordinary profit

4,629

2.4%

83.4%

5,552

2.9%

Profit

2,871

1.5%

92.4%

3,107

1.6%

Net sales

Annual dividends

58 yen (forecast)

% of
sales

58 yen*As stated in the “Notice Regarding Revision to Projected Operating Results” announced on August 9,2024, we have revised the financial results forecast announced on April 26, 2024.
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appendix••

Income and expenses pertaining to real estate leasing are reclassified as operating revenue and selling, general and administrative
expenses from the fiscal year ending March 31, 2025.
Figures for the fiscal year ended March 31, 2024 and before have not been reclassified.

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HOME CENTER and HOME FASHION STOREStatements of Income
Items(Millions of yen)Three months ended
June 30, 2022
Results

YoY
ChangeNet sales

53,961Gross profit

Three months ended
June 30, 2023

% of
sales

Results

YoY
Change96.0%

100.0%

51,732

18,934

96.8%

35.1%

Operating grossprofit19,02096.8%

Selling, general andadministrative
expenses

14,725

Operating profit

Three months ended
June 30, 2024

% of
sales

Results

YoYchange95.9%

100.0%

48,51993.8%

100.0%

17,434

92.1%

33.7%

16,521

94.8%

34.1%

35.2%

17,517

92.1%

33.9%

16,693

95.3%

34.4%

96.9%

27.3%

14,915101.3%

28.8%

15,182101.8%

31.3%

4,295

96.4%

8.0%

2,602

60.6%

5.0%

1,511

58.1%

3.1%

Ordinary profit

4,394

96.8%

8.1%

2,688

61.2%

5.2%

1,527

56.8%

3.1%

Profit

2,766

98.2%

5.1%

1,619

58.5%

3.1%

963

59.5%

2.0%

Existing Stores(YoY Change)

% of
sales

Three months ended
June 30, 2022

Three months ended
June 30, 2023

Three months ended
June 30, 2024

Net sales

95.8%

95.8%

96.9%

Customers

92.0%

92.0%

103.1%

Customer average

104.1%

104.1%

93.9%

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HOME CENTER and HOME FASHION STORE

Segments
Net sales(Millions of yen)Three months ended
June 30, 2022
Results

YoY
ChangeMaterials, DIY andgardening goods

27,13697.0%

Household goods

12,924

Furniture and homefashion goods

Three months ended
June 30, 2023

% of
sales

Results

YoY
Change50.3%

25,769

95.0%

95.3%

24.0%

12,588

9,708

93.7%

18.0%

Others

4,191

96.4%

Total

53,96196.0%

Gross profit(Millions of yen)

YoY
ChangeMaterials, DIY andgardening goods

9,838

98.8%

Household goods

3,692

Furniture and homefashion goods

YoY
Change49.8%

24,372

94.6%

50.2%

97.4%

24.3%

11,802

93.8%

24.3%

8,968

92.4%

17.3%

8,248

92.0%

17.0%

7.7%

4,405

105.1%

8.6%

4,095

93.0%

8.4%

100.0%

51,73295.9%

100.0%

48,51993.8%

100.0%% ofSales

Three months ended
June 30, 2023
Results

YoY
Change

36.3%

9,101

92.5%

94.1%

28.6%

3,407

4,118

94.7%

42.4%

Others

1,286

96.5%

Total

18,93496.8%

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% of
sales

Results

Three months ended
June 30, 2022
Results

Three months ended
June 30, 2024

% of
Sales

% of
Sales

Three months ended
June 30, 2024
Results

YoY
Change

% of
sales

35.3%

8,731

95.9%

35.8%

92.3%

27.1%

3,187

93.5%

27.0%

3,625

88.0%

40.4%

3,396

93.7%

41.2%

30.7%

1,299

101.1%

29.5%

1,205

92.8%

29.4%

35.1%

17,434

91.6%

33.7%

16,521

94.8%

34.1%

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HOME CENTER and HOME FASHION STORE

Number of Stores by Area and Business Type
Number of Storesat the End of theTermThree months ended
June 30, 2022

Three months ended
June 30, 2023

Three months ended
June 30, 2024

Combination
storesHI standalone
storesFurniture-only
storesCombination
storesHI standalone
storesFurniture-only
storesCombination
storesHI standalone
storesFurniture-only
storesKyushu

82

106

3

81

106

3

81

109

3

Chugoku andShikoku

33

52

1

33

51

1

31

51

1

Kansai

16

22

7

16

23

8

16

25

8

Chubu

9

13

2

9

13

2

9

13

2

Kanto and
Tohoku

3

9

2

3

9

2

3

9

2

143

202

15

142

202

16

140

207

16

Total

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360

360

363

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HOME CENTER and HOME FASHION STORE

Balance Sheets
Items(Millions of yen)

Fiscal Year Ended March 31, 2023

Results

Compared to
the End of thePrevious
Fiscal Year

Change From
the End of thePrevious
Fiscal Year

Fiscal Year Ended March 31, 2024

Results

Compared to
the End of thePrevious
Fiscal Year

Change From
the End of thePrevious
Fiscal Year

Three months ended
June 30, 2024
Results

Compared to
the End of thePrevious
Fiscal Year

Chane From theEnd of thePrevious
Fiscal Year

Total assets

238,408

102.3%+5,333

232,246

97.4%(6,162)

238,163102.5%+5,917

Current assets

105,748105.0%+5,00399,574

94.2%(6,173)102,380102.8%+2,80636,123105.9%+2,011

32,99791.3%(3,125)35,103106.4%+2,106132,660

100.2%+329

132,660

100.0%＋11

135,783

102.3%+3,110119,010100.4%+452

119,210100.2％＋199

122,168

102.5%+2,95876,594101.7%+1,282

72,88595.2%(3,709)78,605107.8%+5,72019,03393.8%(1,259)18,828

98.9%

(204)

18,905100.4%+76

161,813102.6%

4,050

159,36198.5%(2,452)

159,558

100.1%+197

Of which, cash anddeposits
Non-current assets
Of which, property,
plant and equipment

Liabilities
Interesting-bearing
liabilities

Net assets

Fiscal Year Ended March 31, 2023

Fiscal Year Ended March 31, 2024

Three months ended
June 30, 2024

Cash and deposit
ratio (%)

15.2%

14.2%

14.7%

Ratio of interestbearing liabilities (%)

8.0%

8.1%

7.9%

Equity ratio (%)

67.9%

68.6%

67.0%

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HOME CENTER and HOME FASHION STORE

Stock (Full-year)
Fiscal Year Ended
March 31, 2022

Fiscal Year Ended
March 31, 2023

Fiscal Year Ended
March 31, 2024

Number ofIssued Shares

29,784,400

29,784,400

29,784,400

Number ofTreasury Shares

1,221,800

1,221,850

3,007,890

Net Assets per Share (yen)

5,523

5,665

5,951

Dividend per Share (yen)

56

56

58

Earnings per Share (yen)

279

197

110

Payout Ratio

20.1

28.4

52.6

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HOME CENTER and HOME FASHION STOREThis document is intended solely for the purpose of providing information toinvestors.
We will disclose information as needed at an appropriate time depending on
the external environment and the progress of business performance.
This document may contain forward-looking statements. These statements
are not statements of past fact, but are instead forecasts based on
hypotheses and assumptions determined from information available at thecurrent time.
They also involve risks and uncertainties related to economic trends, market
environments, and the like.
Actual business performance may therefore differ from the Company’s
forecasts.

http://www.nafco.tv(Securities Code: 2790)

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